Help Shape What’s Next for NAHB
 
Take the Industry Pulse Check. Learn more
 

How Municipalities Can Address Housing Affordability Through Code and Zoning Reform

Land Development
Published

Historical patterns of land use policy and zoning have either disincentivized or disallowed production of various housing types and price points. Many U.S. cities have zoned the majority of their residential land for single-family detached housing, which not is not the right choice for everyone. Code and zoning reform can help increase home supply and address the nation’s housing affordability crisis.

NAHB’s new resource, Model Housing and Land Development Code Guide, includes information about how updating housing and land development code can have real impacts on the costs and availability of housing. NAHB members in communities considering these changes can share this document with local officials and housing advocates to help educate them on the value of code and zoning reform.

Making the approval and review processes as efficient as possible should be a top priority. Lengthy and unpredictable processes add costs to housing development and hurt affordability. One potential solution to address this issue is to enact a housing approval shot-clock — for example a 60-day limit on issuing approval or denial for each housing proposal. Even better, cities such as Sacramento are now issuing policy that makes certain housing types by-right or able to bypass these entitlement processes all together. Another expediating strategy is to release preapproved plans for housing types.

The Model Housing and Land Development Code Guide also discusses the importance of legalizing and incentivizing a greater variety of housing types, including missing middle housing. Removing excessive and burdensome regulation that artificially raises the cost to build and sell homes should be closely examined. Often these come in the form of architectural design standards that have little to do with the safety, health and welfare basis of zoning. The guide provides good examples of pro-housing, sensible codes from across the United States.

Learn more through NAHB’s Land Use 101 toolkit.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Economics

May 05, 2026

New Home Sales Rise, Supported by Limited Existing Inventory

Sales of newly built single-family homes rose 7.4% in March, to a seasonally adjusted annual rate of 682,000, according to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales is up 3.3% from a year earlier.

Economics

May 05, 2026

NAHB Debuts New Resource That Estimates Quarterly Remodeling Spending by State

NAHB is debuting a new resource called the State Projections of Remodeling (SPR) that will provide a quarterly analysis of remodeling activity for each state in the nation based on total dollar volume, market share and change in remodeling spending.

View all

Latest Economic News

Economics

May 04, 2026

Mortgage Rates Climb as Inflation Rebounds and Yields Rise

Mortgage rates continued to increase in April as ceasefire negotiations remain inconclusive. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.34% in April, 16 basis points (bps) higher than March. The average 15-year rate also increased by 13 bps to 5.69%. Despite the recent increase, both rates remain lower than a year ago by 39 bps and 21 bps, respectively.

Economics

May 01, 2026

Student Housing Construction Investment Holds Steady in the First Quarter of 2026

Private fixed investment in student dormitories edged up 0.1% in the first quarter of 2026, holding at a seasonally adjusted annual rate (SAAR) of $3.9 billion. This modest gain marked a third consecutive quarterly increase, despite continued pressures from elevated interest rates. However, on a year-over-year basis, investments in dorms remained almost unchanged.

Economics

Apr 30, 2026

Housing’s Share of GDP Dips Below 16% for First Time Since 2019

Housing’s share of the economy was 15.9% in the first quarter of 2026, according to the latest estimates of GDP produced by the Bureau of Economic Analysis. This share is down from 16.0% in the fourth quarter and is lower than 16.5% registered just one year ago.